Michigan First-Time Home Buyer Guide 2026
This guide for Michigan first-time home buyers covers MSHDA’s MI Home Loan and MI 10K DPA down payment assistance, the Mortgage Credit Certificate, income and sales price limits, and step-by-step guidance for first-time buyers in Michigan.
MSHDA MI Home Loan Program
The MI Home Loan is Michigan’s primary state-backed mortgage product, administered through the Michigan State Housing Development Authority (MSHDA). It is available statewide to first-time buyers and, in targeted areas, to repeat buyers as well.
| Feature | Detail |
|---|---|
| Availability | First-time buyers statewide; repeat buyers in targeted areas only |
| Min credit score | 640 |
| Income limit | Varies by household size and property location — confirm with a participating lender |
| Sales price limit | $566,355 statewide (after 6/1/2026) |
| Down payment assistance | MI 10K DPA available up to $10,000 |
| Homebuyer education | Required for all borrowers |
| Lender requirement | Must use an MSHDA-participating lender |
“First-time buyer” has a specific MSHDA definition. You generally qualify as a first-time buyer if you have not owned a home in the previous three years. Repeat buyers can only use MI Home Loan in MSHDA-designated targeted areas. Confirm your eligibility and find a participating lender at michigan.gov/mshda.
MI 10K DPA Program
MI 10K DPA is Michigan’s flagship down payment assistance program — a flat $10,000 second mortgage available statewide, with no interest and no monthly payment.
| Feature | Detail |
|---|---|
| Assistance amount | Up to $10,000, available statewide |
| Structure | 0% interest, deferred-payment second mortgage |
| Monthly payment | None |
| Repayment trigger | Sale, refinance, payoff of the first mortgage, or when the home is no longer owner-occupied |
| Pairing requirement | Must be combined with an MSHDA MI Home Loan |
| Homebuyer education | Required for all borrowers via the MSHDA Housing Education Locator |
Mortgage Credit Certificate (MCC)
MSHDA also offers a Mortgage Credit Certificate — a federal tax credit, not a deduction, that qualifying first-time buyers can claim on a portion of their annual mortgage interest for up to 30 years after purchase. This is a long-term tax benefit rather than upfront cash at closing.
The MCC must be arranged through an MSHDA-participating lender at the time of your loan, and specific credit rates and income limits are set by the program administrator. Ask your lender whether pairing an MCC with your MI Home Loan and MI 10K DPA makes sense for your situation.
Income and Sales Price Limits
| Program | Income Limit | Sales Price Limit | Geography |
|---|---|---|---|
| MI Home Loan (2026) | Varies by household size/location | $566,355 (after 6/1/2026) | Statewide |
| MI 10K DPA | Same as MI Home Loan | Same as MI Home Loan | Statewide |
Michigan Down Payment Assistance Eligibility Requirements
To qualify for MI Home Loan and MI 10K DPA, buyers generally must meet the following requirements:
- Credit score: Minimum 640 for MI Home Loan and MI 10K DPA
- Owner-occupancy: Must live in the home as a primary residence
- Income limits: Vary by household size and property location — confirm current figures with a participating lender or michigan.gov/mshda
- Homebuyer education: Required for all borrowers using MI 10K DPA — completed through the MSHDA Housing Education Locator before closing
- Participating lender: Must use a lender that participates in the MSHDA program — not all Michigan lenders offer MI Home Loan or MI 10K DPA
- First-time buyer status: Required statewide; repeat buyers only qualify in MSHDA-designated targeted areas
Combining programs: MI 10K DPA must be combined with an MI Home Loan first mortgage — it is not available as a standalone product. The Mortgage Credit Certificate may have its own separate eligibility criteria; ask your MSHDA-participating lender which combination of programs offers the best terms for your situation.
Step-by-Step Buying Process for Michigan First-Time Home Buyers
| Step | What to Do | Notes |
|---|---|---|
| 1 | Check your credit score | You need at least 640 for MI Home Loan and MI 10K DPA. |
| 2 | Find an MSHDA-participating lender | Not all Michigan lenders offer these programs. Use the MSHDA Experienced Loan Officer Locator. |
| 3 | Complete homebuyer education | Required for all borrowers using MI 10K DPA — use the MSHDA Housing Education Locator. |
| 4 | Get pre-approved | Your lender calculates your maximum loan amount and confirms which MSHDA programs you qualify for. |
| 5 | Make an offer | Your real estate agent will guide you through Michigan’s standard purchase agreement. |
| 6 | Complete inspections | Negotiate any repairs or credits before your contingency deadlines. |
| 7 | Close with a title company | Review your Closing Disclosure and sign documents; Michigan closings are commonly handled by title companies. |
